Kakao to Link Executive Bonuses to Stock Earnings Ratio... "Priority on Enhancing Shareholder Value"

Kakao executives' bonuses, including performance incentives, will be linked to stock price returns.

On the 9th, Jeong Sin-ah, CEO of Kakao, stated during the Q1 earnings conference call, "We will set the executive compensation system to be linked with stock price returns so that it can be connected to shareholder interests, prioritizing the enhancement of shareholder value."

She added, "We will focus on enhancing shareholder value by increasing the visibility of profits and growth to meet market expectations," and said, "The shareholder return plan after 2024 is currently under review to be aligned with the recently announced government guidelines on corporate value enhancement plans, ensuring it meets the market's expectations for Kakao."

A Kakao representative explained, "Bonuses such as long-term performance incentives for executives will be determined based on the performance of stock price returns."

Previously, concerns were raised that executives might be receiving excessive compensation relative to their performance, as Kakao's stock price and earnings showed sluggishness following negative issues such as SM Entertainment's suspected market manipulation and Kakao Mobility's alleged revenue accounting irregularities.